Fantom [FTM], now rebranded as Sonic Labs, is on the cusp of a transformative upgrade with the launch of the Sonic testnet. This upgrade introduces a new high-throughput layer-1 blockchain with a native layer-2 bridge to Ethereum [ETH], positioning Sonic Labs as a significant player in the evolving blockchain landscape.
Sonic Testnet – A Leap Forward
Sonic Labs aims to deliver the best of both worlds: the low cost, scalability, and speed of layer-2 solutions combined with the security of a layer-1 blockchain. With ambitious goals of achieving 10,000 transactions per second (TPS), Sonic has already demonstrated impressive capabilities, reaching 2,000 TPS during its testnet phase. The full launch is expected in late Q4 2024, promising to redefine performance standards for blockchain networks.
Key Developments – Governance and Community Engagement
The Messari Q2 2024 report underscored the critical developments within Sonic Labs, highlighting four major governance proposals. One of the most notable is the approval of a 190.5 million S token airdrop designed to reward loyal users. Additionally, Sonic Labs has ensured 1:1 compatibility between the FTM and S tokens, a crucial move to ease the transition for existing Fantom users. A revamped reward system for validators and builders, outlined in a detailed thread on X, further aims to solidify Sonic’s community-driven approach.
To foster innovation, Sonic Labs has also launched the Sonic Bounty Program, offering rewards for developers who create applications across various sectors, including lending, NFTs, payments, and AI. These initiatives underscore Sonic Labs’ commitment to building a robust, community-approved network.
Fantom [FTM] has been experiencing a downtrend but recently broke out of a falling wedge pattern on the daily chart. This breakout saw FTM reaching the $0.50 price level before retracing to a crucial support zone around $0.40. Historically, the $0.40 area has acted as a strong support, previously driving the price up by 37.48%. This presents a potential opportunity for traders to enter the market, with eyes set on the $0.50 mark again.
With the Sonic upgrade on the horizon, FTM’s price could see a significant rally. However, this rally might be delayed until more fundamentals, such as the successful launch of the Sonic testnet and subsequent mainnet, come into play.
Market Sentiment and Future Prospects
Fantom’s [FTM] current market cap stands at approximately $1.14 billion, with a trading volume of $62 million, yielding a 5.53% volume-to-market ratio. This indicates market stability, supported by adequate liquidity. Despite a 17.83% price fluctuation over the last seven days, the Sonic upgrade could trigger a reversal of these losses, especially given the limited circulating supply of 2.8 billion out of a total 3.2 billion.
Also Read: Fantom (FTM) Bullish Breakout -Analyst Forecasts 234% Rally
Additionally, while FTM’s Open Interest has decreased by 3.57% to $112.87 million, the OI-Weighted Funding Rate of 0.0065% signals a slight bullish sentiment. Coupled with increased social dominance and trading volume related to the Sonic upgrade, FTM could be poised for an upward move.
As these development activities unfold, the timing of FTM’s price rally will hinge on how swiftly the Sonic upgrade impacts market fundamentals. For now, market participants are watching closely, anticipating that Sonic Labs’ innovations will drive FTM to new heights in the crypto space.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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